Razzmatazz Hair Salon

Background Information

This business has been in existence since 1991. The current owner purchased the business in May, 2007 and operates it as a Subchapter S Corporation. The real estate, a commercial condominium, is owned by the owners of the business, separate from the corporation.

Location

Razzmatazz is located in the heart of Bethlehem's business district on Main Street, NH Route 302, a major East-West roadway connecting communities in the White Mountains region of New Hampshire, from Maine, through New Hampshire, to Vermont.

The building is easily accessible from the street and there is ample on-site and on-street parking.

Physical Condition

The salon is housed in a well managed commercial condominium building, which was built in 1920. The association is conservative and viable, and the exterior maintenance program is well focused. The interior of the unit is also well maintained, and all furniture, fixtures, and equipment are in good to excellent condition.

Reason for Selling & Other Facts

The owner is selling due to her husband's relocation and travel. She is willing to sign a non-compete for 10 years and 100 miles.

Inventory of Furniture, Fixtures & Equipment

Full Inventory Available Upon Request.

The approximate total fair market value of the Furniture, Fixtures and Equipment is $30,713.

Inventory

Inventory, not included in the price of the business, is estimated at $7000.

Not Included in the Sale

Cash on hand
Business bank accounts
Accounts Receivable
Accounts Payable
Outstanding loans
Any other security deposits and prepaid expenses

Hours of Operation/Employees

The salon is open Tuesday, 9:00am to 5:00pm; Wednesday-Friday, 9:00am to 7:00pm, and Saturday, 9:00am to 3:00pm.

The owner manages the business and is an esthetician. She does not bring in a significant sales volume which will benefit a buyer.

Current staffing includes two full-time and two part-time employees, and they are all NH licensed cosmetologists. The business guarantees a base wage from $7.25 to $8.75 per hour, or a commission, whichever is greater. The base is rarely used as commission is made regularly. Additional income can be earned through commission incentives on retail sales and personal tips.

The majority of the business is by appointment, however; walk-ins are also fairly frequent, especially during the summer months.

Size of Facility

The salon is housed in a 1870 square foot space, with 935 square feet finished above grade, 59 square feet finished below grade, and the remaining 851 square feet unfinished below grade. Condo fees are $48 per month.

Annual Sales Volume

Available upon completing a Confidentiality Agreement.

Gross Profit Margin

Available upon completing a Confidentiality Agreement.

Expenses

Available upon completing a Confidentiality Agreement.

2005-2007 YTD Profit and Loss Statements

Available upon completing a Confidentiality Agreement.

Ways to Improve the Business

Increased hours of operation. The salon is currently open 5 days per week. Opening one or two days additionally and/or extending hours both earlier in the morning and later in the evening would certainly have a positive impact on income.
Add more staff. Currently only 4 of the 6 stations are being utilized. The two inactive stations could be filled by the new owner, employees, or sub-contractors, all potentially profitable moves.
Employ more cross selling…facial, body waxing, manicures, and pedicures all have growth potential. Offering massages is also a potential revenue source.
Expanding outside services, such as off-site group, convention, reunion, and wedding events held in the myriad resorts and function facilities in the White Mountains.
Increased marketing to handle more group work inside the salon. The salon currently earns up to $7000 per year in wedding party income, and could do much more with more targeted marketing.

Recommended Listing Price (RLP)

The RLP calculation for this business is as follows:

The business has gross revenues of:	*
The business has a cost of goods sold of:	*
The business has a gross profit of:	*
The business has Sellers Discretionary Earnings of:
Salable Inventory at Cost:	$7,000
Furniture, Fixtures and Equipment:	$30,713
Real Estate	85,000
	TOTAL RLP: $134,900

*Available upon completing a Confidentiality Agreement.

Ownership Transfer Specifications

The current owner is asking $134,900 total for the business and real estate. They may be willing to provide partial terms to a qualified buyer.

Website designed by Blue Moose Technology